Now Playing

9/12/2013 9:13AM

Why Is It So Hard For Pandora to Make Money?

It might still be the most popular digital music service in America, but that doesn’t mean Pandora is making money. Pandora has named a new CEO in a bid to turn itself around. Tom Gara joins the News Hub. Photo: AP

This transcript has been automatically generated and may not be 100% accurate.

... I ... the the ... music streaming service Pandora is a hit with listeners accounts the second ascent of already listing in the US ... that is struggling to turn a profit ... now as a new CEO ... of the joys is to look into whether the new guy Brian MacAndrews ... Hasbro takes to Mana ties the service's popularity ... went up ... one ... side ... and insisting the skies that it had seats of success in his previous ... the job right and this is some says he might ... get ... how to take some things is a big issue for any Internet company ... this big boom in popularity actually turn into some money ... exactly so he ... built up a company like wanted which was the huge online advertising ... business and getting bought out the markets up for about six billion dollars ... back in two thousand and seven when all the big tech companies realize they had to ... buy an online advertising company to be added to the ... tothe economy side you never knew they needed to do and that's exactly Pandora's problem writes of the whole thing is ... they stream the music ... what's the use of mosquito afraid would have applied option the government commendable taking off on a ... about seven to seventy two million listeners right now in the U S and isn't appropriate number ... of August and Dominion snack company ... I may need to make money off that somehow in the US that somehow is likely selling ads and ... in the Texas mall like regular eighteen on top of the typical ... banner ads like to get a website much their ads are actually Fullerton ... how do you listen to what Radiate including that of mine wrote that because the other part this is the cost factor that will cease to pray ... to the risk of companies to to the music produces ... and ... as they develop Melissa is listed as Royalty's lies in how to stop them with that pose the use of a mutual one of the problems is that on like say ... in Apple has the option still ... unit YouTube I phone from Apple units are you buying on a nonsense song or ten dollars aam what a view armor of Pandora ... you listen to stream the musical going long for you know that's when flying in the individual soul ... Pandora pain ... the copyright owner of every single is ... the ... right now that devilish live in the numbers yesterday with billions of dollars every quarter ... developments ... in the billions of dollars of music ... and some all listeners the gadgets that the fixed costs don't often often offer them a lot of things ... and ... so you know one thing that reduce the pressure will be in trying unless loyalty to his is one of the things happening right now there's a big fight between the music industry ... and some of the plane's maintenance resigned instead radio shouldn't ... have to pay the same moral teachings of the house a contender to regular rated into the main policy that are the things that I ... for the traditional idea as well as I considered the most integrated ... all the traditional radio that the Justice filing different structures so when they ... negotiated all of this years ago and ... know what one inch remains as a means not regular royalties negotiations happened ... before there was a really huge and nine radio industry and thought that I mean it ... means the company from the people who are lobbying on the internet sides ... I didn't really see the opportunity that in the Senate on the news the company sold ... in India fell in marginal ... business for ... the fashion turning out the just are you getting ... your most new cars that come with dinner wireless internet into the top ... um you know you can get it right you in your car now nearly everywhere ... so that you know those forces are making the company for the BBVA studios think ... we need to get the best out of this can mean to read a company that China had left the kids ... to that of the internet so people don't care about streaming more more more than ... you are in a way that's not quite the same for the original ready ... to cutting edge issue ... Tom thank so much to time